Forever 21 can file for bankruptcy: Report

The Forever 21 fashion retailer is apparently preparing for a bankruptcy filing.

The fashion chain, created in 1984, has engaged in negotiations with financial advisors and lenders as a result of unprofitable stores and dwindling cash reserves, according to a Bloomberg report.

A final effort to restructure its debt could prevent the company from filing its Chapter 11, Bloomberg said.

There are 600 Forever 21 stores in the United States and additional stores in Canada, Asia, Europe and Latin America.

In case of bankruptcy, Forever 21 would be the last clothing retailer to apply for Chapter 11 protection.

Lord & Taylor, one of America's oldest department stores, closed its flagship store in New York earlier this year. The brand has just been sold for $ 100 million to a clothing rental company, The Tote Inc., after financial difficulties as more and more people make purchases online.

Iconic retailer Barneys New York has also recently filed for bankruptcy.

Forever 21 did not return ABC News's comment request.

Soo Youn of ABC News contributed to this report.